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HP INC. AND SUBSIDIARIES
ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) | |||||||||||||||||||||||||||||
| Three months ended | |||||||||||||||||||||||||||||
| July 31, 2020 | April 30, 2020 | July 31, 2019 | |||||||||||||||||||||||||||
| Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | Amounts |
Diluted
net earnings per share | ||||||||||||||||||||||||
| GAAP net earnings | $ | 734 | $ | 0.52 | $ | 764 | $ | 0.53 | $ | 1,179 | $ | 0.78 | |||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||
| Restructuring and other charges | 59 | 0.04 | 81 | 0.06 | 17 | 0.02 | |||||||||||||||||||||||
| Acquisition-related charges (credits) | 11 | 0.01 | 3 | — | (9 | ) | (0.01 | ) | |||||||||||||||||||||
| Amortization of intangible assets | 29 | 0.02 | 29 | 0.02 | 29 | 0.02 | |||||||||||||||||||||||
| Non-operating retirement-related credits | (55 | ) | (0.04 | ) | (56 | ) | (0.04 | ) | (21 | ) | (0.01 | ) | |||||||||||||||||
| Debt extinguishment costs | 40 | 0.03 | — | — | — | — | |||||||||||||||||||||||
| Tax adjustments (a) | (116 | ) | (0.09 | ) | (80 | ) | (0.06 | ) | (315 | ) | (0.22 | ) | |||||||||||||||||
| Non-GAAP net earnings | $ | 702 | $ | 0.49 | $ | 741 | $ | 0.51 | $ | 880 | $ | 0.58 | |||||||||||||||||
| GAAP earnings from operations | $ | 779 | $ | 826 | $ | 1,079 | |||||||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||
| Restructuring and other charges | 59 | 81 | 17 | ||||||||||||||||||||||||||
| Acquisition-related charges (credits) | 11 | 3 | (9 | ) | |||||||||||||||||||||||||
| Amortization of intangible assets | 29 | 29 | 29 | ||||||||||||||||||||||||||
| Non-GAAP earnings from operations | $ | 878 | $ | 939 | $ | 1,116 | |||||||||||||||||||||||
| GAAP operating margin | 5 | % | 7 | % | 7 | % | |||||||||||||||||||||||
| Non-GAAP adjustments | 1 | % | 1 | % | 1 | % | |||||||||||||||||||||||
| Non-GAAP operating margin | 6 | % | 8 | % | 8 | % | |||||||||||||||||||||||
(a) Includes tax impact on non-GAAP adjustments.
